Franklin Financial (Nasdaq: FRAF) posts strong Q1 2026 metrics and updates investor materials
Rhea-AI Filing Summary
Franklin Financial Services Corporation filed an 8-K to furnish updated investor and shareholder presentations highlighting its first quarter 2026 performance and strategic profile.
For Q1 2026, diluted EPS was $1.48 versus $0.88 a year earlier, with net income of $6.6 million. Return on average assets was 1.20% and return on average equity was 15.13%, supported by a net interest margin of 3.53%. As of March 31, 2026, the company reported total assets of $2.3 billion, loans of $1.57 billion, and deposits of $1.89 billion. Wealth management assets under management reached about $1.4 billion, and asset quality metrics remained strong, with nonperforming assets at 0.37% of total assets and an allowance for credit losses of 1.32% of total loans.
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8-K Event Classification
Key Figures
Key Terms
forward-looking statements regulatory
non-GAAP measurements financial
Net interest margin financial
allowance for credit losses financial
nonperforming assets financial
United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report:
FRANKLIN FINANCIAL SERVICES CORPORATION
(Exact name of registrant as specified in its new charter)
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(Former name or former address, if changes since last report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Title of class | Symbol | Name of exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 7.01 Regulations FD Disclosure
Franklin Financial Services Corporation (“the Corporation”) is furnishing this presentation which will be presented in whole or in part, from time to time, by executives of the Corporation in one or more meetings with investors and analysts. The presentation is attached as Exhibit 99.1 and is incorporated by reference.
The Corporation held its annual meeting of shareholders on April 28, 2026. The shareholder presentation is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
The information in this Form 8-K provided under Item 7.01, including all exhibits attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall it be deemed incorporated by reference in any filing of the Corporation under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits. The following exhibits are filed herewith:
Number Description
99.1 Investor Presentation, dated May 1, 2026 of Franklin Financial Services
99.2 Shareholder Presentation, dated May 1, 2026 of Franklin Financial Services
104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
FRANKLIN FINANCIAL SERVICES CORPORATION
By: /s/ Craig W. Best
Craig W. Best
Chief Executive Officer
By: /s/ Charles B. Carroll
Charles B. Carroll
President
Dated: May 1, 2026
Exhibit 99.1
Investor Presentation First Quarter 2026 Highlights Stock Symbol: FRAF (Nasdaq) Franklin Financial Services Corporation F&M TRUST
Certain statements appearing herein which are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements refer to a future period or periods, reflecting management’s current views as to likely future developments, and use words “may,” “will,” “expect,” “believe,” “estimate,” “anticipate,” or similar terms. Because forward-looking statements involve certain risks, uncertainties and other factors over which Franklin Financial Services Corporation has no direct control, actual results could differ materially from those contemplated in such statements. These factors include (but are not limited to) the following: general economic conditions, changes in interest rates, changes in the Corporation’s cost of funds, changes in government monetary policy, changes in government regulation and taxation of financial institutions, changes in the rate of inflation, changes in technology, the intensification of competition within the Corporation’s market area, and other similar factors. We caution readers not to place undue reliance on these forward-looking statements. They only reflect management’s analysis as of this date. The Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and any Current Reports on Form 8-K. GAAP versus non-GAAP Presentations – The Corporation supplements its traditional GAAP measurements with certain non-GAAP measurements to evaluate its performance and to eliminate the effect of intangible assets. By eliminating intangible assets, the Corporation believes it presents a measurement that is comparable to companies that have no intangible assets or to companies that have eliminated intangible assets in similar calculations. However, not all companies may use the same calculation method for each measurement. The Efficiency Ratio measures the cost to generate one dollar of revenue. The non-GAAP measurements are not intended to be used as a substitute for the related GAAP measurements and should not be read in isolation or relied upon as a substitute for GAAP measures. The following table shows the calculation of the non-GAAP measurements. Forward Looking Statements Franklin Financial Services Corporation F&M TRUST 2
About Our Company Four Pillars of Priority Total Assets $2.3B Total Loans $1.6B LOW-COST DEPOSITS FRANCHISE: 34% deposit market share in Franklin County WEALTH AMANGEMENT: Expanding AUM ($1.4B) of differentiated wealth management business drives non-interest income Total Deposits $1.9B Market Cap $230M ASSET QUALITY: 0.27% 5-year average NPL/Gross Loans 0.03% 5-year average Net Charge-offs IMPROVING PROFITABILITY: Q1 2026 1.20% ROA Franklin Financial Services Corporation F&M TRUST 3
1st Quarter 2026 | Financial Highlights Earnings & Profitability Q1-2026 Q4-2025 Q1-2025 Diluted earnings per share (EPS) $ 1.48 $ 1.35 $ 0.88 Net income (thousands) $ 6,637 $ 6,043 $ 3,922 Net interest margin1 (NIM) 3.53% 3.40% 3.05% Return on average assets (ROA) 1.20% 1.05% 0.72% Return on average equity (ROE) 15.13% 14.20% 10.80% Dividend per share $ 0.33 $ 0.33 $ 0.32 Balance Sheet & Capital Total loans (thousands) $ 1,572,426 $1,561,238 $ 1,456,191 Total deposits (thousands) $ 1,889,710 $1,835,772 $ 1,867,577 Common equity ratio (Tier 1) 11.81% 11.45% 10.86% Tangible common equity ratio2 7.42% 7.45% 6.33% Tangible book value per share2 $ 37.78 $ 37.10 $ 31.97 Asset Quality Nonperforming assets3 (NPA) / Total assets 0.37% 0.38% 0.01% Allowance for credit losses (ACL) / Total loans 1.32% 1.32% 1.27% Net Income $6.6 million Wealth Management AUM $1.4B ROA 1.20% ROE 15.13% EPS $1.48 NIM1 3.53% Cost of Deposits 1.52% Yield on Earning Assets1 5.28% 1 Fully taxable equivalent 2 Non-GAAP measurement. See GAAP / Non-GAAP Reconciliation 3 Nonperforming assets = nonaccrual loans, loans 90-days past due and other real estate owned 4 Franklin Financial Services Corporation F&M TRUST
Founded in 1906, F&M Trust Operates in South-Central Pennsylvania and Northern Maryland 22 Locations Serving South Central PA and Washington County MD Primary Trade Area Expanded Trade Area Offering Wealth Management, Commercial Financing, and Residential Lending Services 5 Franklin Financial Services Corporation F&M TRUST
Experienced and Cohesive Executive Team Executive Title Years of Banking Experience Joined F&M Trust Prior Experience Craig W. Best Chief Executive Officer 42 2025 Peoples Security Bank & Trust, First Commonwealth Bank, Equitable Bank Charles B. Carroll, Jr. President & Chief Operating Officer 31 2023 S&T Bank, FirstMerit / Huntington National Bank, BBVA Compass Mark R. Hollar Senior Executive Vice President, Chief Financial Officer & Treasurer 37 1994 ValleyBank & Trust Lorie M. Heckman, CERP, CRCM Executive Vice President, Chief Risk Officer 39 1986 F&M Trust, Vice President of Compliance and Security Steven D. Butz Executive Vice President, Chief Commercial Services Officer 40 2013 PNC, Waypoint, Sovereign, Graystone Tower, Susquehanna Bank Louis J. Giustini Senior Vice President, Chief Retail Services Officer 37 2022 Hagerstown Trust, Columbia Bank, Fulton Bank Karen K. Carmack, DM Senior Vice President, Chief Human Resources Officer 30 2000 ACNB Matthew D. Weaver Senior Vice President, Chief Marketing Officer 25 2014 Susquehanna Bank, Clifton LarsonAllen, IMRE David M. Long Senior Vice President, Chief Technology Officer 18 2022 Howard Bank 6 Franklin Financial Services Corporation F&M TRUST
Net Interest Income ($thousands) Annual $44,671 $51,588 $53,637 $57,514 $69,648 3.08% 3.40% 4.70% 5.16% 5.31% 2.88% 3.11% 3.31% 2.95% 3.25% 0.24% 0.36% 1.75% 2.68% 2.50% 2021 2022 2023 2024 2025 Net interest income Interest-earning asset yield Interest-bearing liability cost Net interst margin Quarterly 5.25% 5.29% 5.28% 3.05% 3.40% 3.53% 2.64% 2.32% 2.16% $15,606 $18,612 $18,521 Q1 2025 Q4 2025 Q1 2026 1Fully taxable equivalent 7 Franklin Financial Services Corporation F&M TRUST
Diversified Non-Interest Income ($thousands) Annual 27.80% 23.00% 22.93% 23.48% 21.60% $3,231 $3,093 $3,594 $3,821 $4,437 $2,170 $1,888 $2,157 $2,279 $2,370 $2,258 $2,527 $2,492 $2,448 $2,535 $2,430 $770 $199 $565 $672 $7,111 $7,152 $7,512 $8,538 $9,169 2021 2022 2023 2024 2025 Quarterly 22.65% 20.16% 20.95% $1,082 $916 $1,018 $558 $597 $618 $605 $655 $647 $109 $260 $318 $2,215 $2,272 $2,308 Q1 2025 Q4 2025 Q1 2026 Excludes BOLI gains, gains on sale of assets, and gains on sale of securities Franklin Financial Services Corporation F&M TRUST 8
Wealth Management AUM ($thousands) $946,975 $904,523 $1,094,779 $169,290 $1,273,421 $1,271,068 $100,457 $147,454 $217,891 $109,604 $153,886 $27,509 $118,046 $116,398 $135,423 $139,872 $147,880 $145,477 As of 12/31/2021 As of 12/31/2022 As of 12/31/2023 As of 12/31/2024 As of 12/31/2025 As of 3/31/2026 Brokerage Trust New assets under management (YTD) 1 Includes assets from new and existing clients and excludes increases attributable to market appreciation. Franklin Financial Services Corporation F&M TRUST 9
Deposits by Category Deposits $74,253 $57,390 $132,446 $315,905 $224,323 $238,558 $119,908 $128,709 $105,907 $96,646 $98,124 $98,637 $579,826 $569,586 $572,058 $694,880 $771,231 $801,650 $511,969 $496,532 $454,517 $417,870 $431,843 $419,207 19% 19% 18% 16% 17% 18% $298,403 $299,231 $273,050 $290,346 $310,251 $331,658 As of 12/31/2021 As of 12/31/2022 As of 12/31/2023 As of 12/31/2024 As of 12/31/2025 As of 3/31/2026 DDA Interest checking MMA Savings Time DDA/Total deposits Cost of Deposits 4.13% 4.33% 4.77% 4.63% 4.13% 3.98% 3.83% 3.65% 2.16% 2.37% 2.46% 2.38% 2.25% 2.18% 2.02% 18.30% 1.78% 1.96% 2.06% 2.02% 1.90% 1.83% 1.68% 1.52% 1.84% 2.02% 1.89% 1.82% 1.78% 1.74% 1.63% 1.50% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Interest-bearing non-maturity deposits Certificates of deposit Total interest-bearing deposits Total Deposits Franklin Financial Services Corporation F&M TRUST 10
Diversified Loan Portfolio Annual Quarterly ($thousands) 3.86% 4.14% 5.16% 5.65% 5.84% 5.87% $6,406 $6,199 $6,815 $8,853 $9,657 $10,728 $140,669 $118,443 $115,018 $108,545 $101,958 $99,341 $225,084 $244,949 $303,749 $355,262 $422,511 $438,624 $103,874 $117,159 $127,638 $122,052 $123,541 $114,666 $522,779 $564,291 $703,767 $803,365 $903,571 $909,067 As of 12/31/2021 As of 12/31/2022 As of 12/31/2023 As of 12/31/2024 As of 12/31/2025 As of 3/31/2026 Commercial real estate Commercial 1-4 Family residential State/Mun I loans Consumer Loan yield 1Fully taxable equivalent Excludes loans held-for-sale Franklin Financial Services Corporation F&M TRUST 11
Largest Non-owner Occupied CRE Concentrations ($thousands) Annual Quarterly 234.4% 239.3% 290.7% 332.9% 349.9% 344.7% $27,042 $36,838 $63,654 $68,569 $68,241 $68,931 $30,733 $55,238 $68,303 $82,360 $87,933 $95,832 $46,811 $40,738 $58,074 $60,102 $88,884 $93,736 $70,299 $81,283 $80,670 $79,197 $102,194 $103,847 $53,599 $80,905 $103,723 $132,894 $163,356 $157,102 As of 12/31/2021 As of 12/31/2022 As of 12/31/2023 As of 12/31/2024 As of 12/31/2025 As of 3/31/2026 1Regulatory CRE concentration ratio Franklin Financial Services Corporation F&M TRUST 12
Credit Quality Nonperforming assets1 (NPA) / Total assets 0.42% 0.01% 0.01% 0.01% 0.38% 0.37% 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 3/31/2026 Allowance for credit losses / Gross loans 1.51% 1.35% 1.28% 1.26% 1.32% 1.32% 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 3/31/2026 Net (Charge-offs)Recoveries / Average loans 0.04% -0.15% -0.02% -0.03% 0.00% -0.01% 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 3/31/2026 Nonperforming loans2 / Gross loans 0.74% 0.01% 0.01% 0.02% 0.55% 0.54% 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 3/31/2026 1 Nonperforming assets = nonaccrual loans, loans 90-days past due and other real estate owned 2 Nonperforming loans = nonaccrual loans and loans 90-days past due Franklin Financial Services Corporation F&M TRUST 13
Capital 18.41% 17.21% 14.45% 13.85% 13.27% 13.66% 15.20% 14.22% 11.82% 11.31% 11.45% 11.81% 8.42% 9.26% 8.98% 7.82% 8.42% 8.43% 8.39% 8.95% 9.01% 7.92% 8.17% 8.57% 8.52% 6.22% 6.74% 6.20% 7.45% 7.42% As of 12/31/2021 As of 12/31/2022 As of 12/31/2023 As of 12/31/2024 As of 12/31/2025 As of 3/31/2026 Risk-based capital (Total) Leverage ratio (Tier 1) Common equity ratio (Tier 1) Tangible common equity ratio (1) Tangible common equity ratio excluding AOCI(1) 1 Non-GAAP measurement. See GAAP/Non-GAAP Reconciliation Franklin Financial Services Corporation F&M TRUST 14
Stock Symbol: FRAF (Nasdaq) www.franklinfin.com www.fmtrust.bank Investor Relations Officer Amanda Ducey 717-261-3553 amanda.ducey@f-mtrust.com Franklin Financial Services Corporation F&M TRUST
Appendix Franklin Financial Services Corporation F&M TRUST
Summary Performance Metrics Q1 2026 Q4 2025 Q1 2025 Year Ended 12/31/2025 Year Ended 12/31/2024 Year Ended 12/31/2023 Year Ended 12/31/2022 Year Ended 12/31/2021 Diluted earnings per share $ 1.48 $ 1.35 $ 0.88 $ 4.74 $ 2.51 $ 3.10 $ 3.36 $ 4.42 Net overhead ratio1 1.89% 1.88% 1.99% 1.79% 1.84% 1.94% 1.86% 1.56% Return on average assets 1.20% 1.05% 0.72% 0.94% 0.54% 0.78% 0.83% 1.17% Net interest margin2 3.53% 3.40% 3.05% 3.25% 2.95% 3.31% 3.11% 2.88% Dividend per share $ 0.33 $ 0.33 $ 0.32 $ 1.31 $ 1.28 $ 1.28 $ 1.28 $ 1.25 Market value per share $ 51.08 $ 50.20 $ 35.45 $ 50.20 $ 29.90 $ 31.55 $ 36.10 $ 33.10 Book value per share $ 39.78 $ 39.11 $ 33.99 $ 39.11 $ 32.69 $ 30.23 $ 26.01 $ 35.36 Tangible book value per share3 $ 37.78 $ 37.10 $ 31.97 $ 37.10 $ 30.65 $ 28.17 $ 23.96 $ 33.34 Market cap ($M) $ 229.50 $ 224.95 $ 157.91 $ 224.95 $ 132.37 $ 137.91 $ 158.48 $ 147.00 1 Net Overhead Ratio = (Noninterest Expense – Noninterest Income + BOLI Gains + Gain on Sale of Assets + Gains on sale of Securities) / Average Assets 2 Fully taxable equivalent 3 Non-GAAP measurement. See GAAP / Non-GAAP Reconciliation Franklin Financial Services Corporation F&M TRUST 17
GAAP / Non-GAAP Reconciliation ($thousands) As-of 3/31/2026 As-of 3/31/2025 As-of 12/31/2025 As-of 12/31/2024 As-of 12/31/2023 As-of 12/31/2022 As-of 12/31/2021 Shareholders' equity $ 178,744 $ 151,391 $ 175,242 $ 144,716 $ 132,136 $ 114,197 $ 157,065 Less intangible assets 9,016 9,016 9,016 9,016 9,016 9,016 9,016 Tangible shareholders' equity (Non-GAAP) 169,728 142,375 166,226 135,700 123,120 105,181 148,049 Less AOCI (23,265) (31,856) (21,589) (35,508) (40,940) (51,287) (547) Tangible shareholders' equity excluding AOCI (Non-GAAP) 192,993 174,231 187,815 171,208 164,060 156,468 148,596 Total assets 2,297,518 2,257,478 2,239,018 2,197,841 1,836,039 1,699,579 1,773,806 Less intangible assets 9,016 9,016 9,016 9,016 9,016 9,016 9,016 Total tangible assets (Non-GAAP) 2,288,502 2,248,462 2,230,002 2,188,825 1,827,023 1,690,563 1,764,790 Tangible common equity ratio (Non-GAAP) 7.42% 6.33% 7.45% 6.20% 6.74% 6.22% 8.39% Tangible common equity ratio excluding AOCI (Non-GAAP) 8.43% 7.75% 8.42% 7.82% •eye 8.98% ----------- 9.26% 8.42% Shares outstanding (thousands) 4,493 4,454 4,481 4,427 4,371 4,390 4,441 Tangible book value per share (Non-GAAP) $ 37.78 $ 31.97 $ 37.10 $ 30.65 $ 28.17 $ 23.96 $ 33.34 Franklin Financial Services Corporation F&M TRUST 18
Exhibit 99.2
Welcome Shareholders January 15, 2026 Franklin Financial Services Corporation F&M TRUST Stock Symbol: FRAF (Nasdaq) Franklin Financial Services Corporation F&M TRUST
Welcome & Introductions Warren Elliott, Chairman of the Board Franklin Financial Services Corporation F&M TRUST
Board of Directors Warren Elliott President & CEO Dan Fisher Vice Chairman of the Board Craig Best Chairman of the Board Franklin Financial Services Corporation F&M TRUST
Board of Directors Marty Brown Kevin Craig Greg Duffey Franklin Financial Services Corporation F&M TRUST
Board of Directors Stanley Kerlin Don Mowery Franklin Financial Services Corporation F&M TRUST
Board of Directors Kim Rzomp Greg Snook Franklin Financial Services Corporation F&M TRUST
Craig Best President & CEO (717) 262-7583 craig.best@f-mtrust.com Franklin Financial Services Corporation F&M TRUST
Franklin Financial Services Corp. Holding Company for F&M Trust Listed on Nasdaq: FRAF Shares Outstanding: 4,481,159 Share Price: $51.41 Dividend: $1.31 / Share Dividend Yield: 2.50% Market Capitalization: $229.15 Average Daily Trades (Trailing 3 Months): 46,989 Number of Shareholders: 1,473 Top 3 Shareholders: Fourthstone LLC # of Shares: 331,586 Market Value: $17M Vanguard Group LLC # of Shares: 226,079 Market Value: $11.6M BlackRock Inc. # of Shares: 212,199 Market Value: $10.9M As of January 14, 2026 Franklin Financial Services Corporation F&M TRUST As of January 14, 2026
F&M Trust Assets: $2.297 Billion Deposits: $1.903 Billion Loans: $1.544 Billion Branches: 23 Counties: Frankin, Cumberland, Dauphin, Fulton and Huntingdon Counties in PA, and Washington County, MD Customers: 83,067 Households: 48,497 As of September 30, 2025 Franklin Financial Services Corporation F&M TRUST
23 Locations Serving South Central PA and Washington County MD Primary Trade Area Expanded Trade Area Offering Wealth Management, Commercial Financing, and Residential Lending Services Franklin Financial Services Corporation F&M TRUST
Agenda Senior Management Introductions 2025 Successes Company Highlights Market Overview – 2025 Year-End Update Franklin Financial Services Corporation F&M TRUST
Senior Management Chad Carroll Senior Executive Vice President Chief Operating Officer Franklin Financial Services Corporation F&M TRUST
Senior Management Craig Best President & CEO Mark Hollar Senior Executive Vice President Chief Financial Officer & Treasurer Lorie Heckman , CERP, CRCM Executive Vice President Chief Risk Officer Franklin Financial Services Corporation F&M TRUST
Senior Management Steve Butz Executive Vice President Chief Commercial Services Officer Lou Giustini Senior Vice President Chief Retail Services Officer Karen Carmack, D.M. Senior Vice President Chief Human Resources Officer Franklin Financial Services Corporation F&M TRUST
Senior Management Dave Long Senior Vice President Chief Technology Officer Matt Weaver Senior Vice President Chief Marketing Officer Franklin Financial Services Corporation F&M TRUST
2025 Successes Chad Carroll, Senior Executive VP & COO Franklin Financial Services Corporation F&M TRUST
Linglestown Community Office Over $54 million in Deposits As of December 31, 2025 Over $6 million in Consumer Loan Originations As of December 31, 2025 474 New Deposit Accounts Opened As of December 31, 2025 Franklin Financial Services Corporation F&M TRUST
Wealth Management Surpassed $1.4 billion in Assets Under Management Over $9 million in Revenue for 2025 Franklin Financial Services Corporation F&M TRUST
Over 2,200 Hours Volunteered Across 100+ Events Supported Over 280 Organizations Through Sponsorships & Donations Over $460,000 Given in Support of Local Community Organizations Community Support Franklin Financial Services Corporation F&M TRUST
Franklin Financial Services Corporation F&M TRUST
Company Highlights Mark Hollar, Senior Executive VP & CFO Franklin Financial Services Corporation F&M TRUST
Annual Dividend Per Share $1.25 2021 $1.28 2022 $1.28 2023 $1.28 2024 $1.31 2025 Franklin Financial Services Corporation F&M TRUST
FRAF Closing Price High - Low - Year End $60 $50 $40 $30 $20 $34.41 $36.10 $35.69 $33.90 $56.52 $10 $33.10 $36.10 $31.55 $29.90 $50.20 $0 $26.06 $28.64 $24.36 $25.55 $28.08 2021 2022 2023 2024 2025 Franklin Financial Services Corporation F&M TRUST
FRAF Monthly Trading Volume 2025 2024 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 Average Daily Volume Traded: 2024 – 5,361 Shares; 2025 – 25,857 Shares Franklin Financial Services Corporation F&M TRUST
Amanda Ducey Corporate Secretary (717) 261-3553 amanda.ducey@f-mtrust.com Zoe Clayton Assistant Corporate Secretary (717) 261-3551 zoe.clayton@f-mtrust.com Franklin Financial Services Corporation F&M TRUST
2025 Year-End Update Warren Hurt Senior Vice President Chief Investment Officer Franklin Financial Services Corporation F&M TRUST
Economic Review and Outlook Headlines: 2025 - A Challenging Year to Navigate Franklin Financial Services Corporation F&M TRUST
Current Conditions: GDP Recovers After Negative Q1 2025 Real Gross Domestic Product Q3 2025 GDP: 4.3% Source: U.S. Department of Commerce: Bureau of Economic Analysis/FRED Franklin Financial Services Corporation F&M TRUST
Economic review and Outlook Current Conditions: Inflation Lower but Still Above Target Consumer Price Index Fed Declares “Inflation Transitory” June 2022 Peak = 9.1% December 2025 = 2.7% Source: U.S. Department of Labor> Bureau of Labor Statistics/FRED Franklin Financial Services Corporation F&M TRUST
Economic Review and Outlook Labor Conditions: Unemployed Workers Just Passed Open Jobs 2.0 X Job Openings Unemployed Workers March 2022 - 5.9 Million Job Openings November 2025 - 7.15 Million Unemployed Workers November 2025 - 7.78 Million March 2022 - 12.0 Million Source: U.S. Bureau of Labor Statistics via FRED® Franklin Financial Services Corporation F&M TRUST
Economic Review and Outlook Labor Conditions: Unemployment Rate “Creeping” Higher Civilian Unemployment Rate December 2025 – 4.4% Source: U.S. Department of Labor: Bureau of Labor Statistics/FRED Franklin Financial Services Corporation F&M TRUST
2025 Equity Review Stock Market Review Franklin Financial Services Corporation F&M TRUST
Economic Review and Outlook 2025 Equity Review: Third Consecutive Strong Year GLD = GOLD ETF EFA = MCSI EAFE ETF IXIC = NASDAQ RUT= RUSSELL 2000 SMALL CAP SPY = S&P 500 ETF DIA = DJIA ETF 73.16% 32.70% 24.06% 19.57% 19.43% 16.84% *Above returns based upon price performance as of Jan. 12, 2026 Franklin Financial Services Corporation F&M TRUST
Economic Review and Outlook 2025 Equity Markets - Mega Cap Stocks Domination Contribution to S&P Return As of Dec. 31, 2026 Nvidia 15.5% Alphabet 13.5% Microsoft 7.4% Broadcom 7.2% J.P. Morgan 4.6% Palantir 3.5% Meta 0.4% Other 517 Companies 47.9% Contribution to S&P 500 Return Rank Ticker Company Contribution 1. NVDA Nvidia 15.5% 2. GOOG Alphabet 13.5% 3. MSFT Microsoft 7.4% 4. AVGO Broadcom 7.2% 5. JPM J.P. Morgan 4.6% 6. PLTR Palantir 3.5% 7. META Meta 0.4% 8-524 Other 517 Companies 47.9% Total Top Seven 52.1% Total S&P 500 Return 2025 17.9% Seven companies drove the performance of the S&P 500. Franklin Financial Services Corporation F&M TRUST
Economic Review and Outlook 2025 Equity Update: Small Cap Stocks Catching Up RUT = RUSSELL 2000 SMALL CAP +19.80% SPX = S&P 500 INDEX +19.41% *Above returns based upon price performance as of Jan. 12, 2026 Franklin Financial Services Corporation F&M TRUST
Economic Review and Outlook 2025 Equity Update: FRAF Outperforms Index and Peers! FRAF= FRANKLIN FINANCIAL +80.06% RUT= RUSSELL 2000 SMALL CAP +19.83% ABQI = OMX ABA Community Bank Index +8.57% *Above returns based upon price performance as of Jan. 12, 2026 Franklin Financial Services Corporation F&M TRUST
2025 Fixed Income Review Interest Rate Analysis Franklin Financial Services Corporation F&M TRUST
Economic Review and Outlook Current Conditions: Fed Policy Easing After Record Tightening 2022 - 24 was fastest and largest tightening cycle since 1980 Fed overnight rate cuts not moving longer term rates Market Yield on U.S. Treasury Securities as 10-Year Constant maturity, Quoted on an Investment Basis Federal Funds Target Range – Lower Limit 10 Year Treasury Yield Red Funds Rate Franklin Financial Services Corporation F&M TRUST
Economic Review and Outlook Current Conditions: Fed Policy Easing After Record Tightening Fed policy direction pointing to 0.25 - 0.5% of further cuts in 2026 Powell term expiration and Fed independence issues return The December 2026 Dot Plot Expected fed funds are tatt year-end Median Range Franklin Financial Services Corporation F&M TRUST
Economic Review and Outlook The Bull Case: Data after the government shutdown is coming in better than expected for key economic measures (Unemployment, Inflation, GDP, etc.) Tariff policy has been less punitive than originally anticipated and tariff revenue is reducing the projected deficit The passage of the “Big Beautiful Bill” gives tax and economic certainty that should be a tailwind for stocks and commercial lending Earnings remain strong, latest information shows 82% of S&P 500 companies have beat earnings estimates 2026 Economic Outlook: 2026 Generally Bullish Franklin Financial Services Corporation F&M TRUST
Economic Review and Outlook 2026 Economic Outlook: Risk Factors to Watch The Bear Concerns: Strong stock performance remains concentrated in a few very highly valued AI stocks with very aggressive growth targets Trade policies and Fed independence currently face legal challenges Deficit spending and national debt continue to impact long-term interest rates Franklin Financial Services Corporation F&M TRUST
Craig Best, President & CEO Questions Franklin Financial Services Corporation F&M TRUST
TRIVIA Franklin Financial Services Corporation F&M TRUST
What former F&M Trust President led a team from Chambersburg on the Nationally Televised TV Show “Almost Anything Goes”? Franklin Financial Services Corporation F&M TRUST
Bob Zullinger Franklin Financial Services Corporation F&M TRUST
In 1990, how many banks were headquartered in Franklin County? Franklin Financial Services Corporation F&M TRUST
Nine Franklin Financial Services Corporation F&M TRUST
How many banks are headquartered in Franklin County today? Franklin Financial Services Corporation F&M TRUST
#1 Franklin Financial Services Corporation F&M TRUST
What anniversary year is it for F&M Trust this year? A. 100 B. 120 C. 75 Franklin Financial Services Corporation F&M TRUST
February 5, 1906 – 120 Years Franklin Financial Services Corporation F&M TRUST
What year was Franklin Financial Services Corporation listed on Nasdaq? Franklin Financial Services Corporation F&M TRUST
2019 Franklin Financial Services Corporation F&M TRUST
Closing Comments Warren Elliott, Chairman of the Board Franklin Financial Services Corporation F&M TRUST
Annual Meeting Tuesday, April 28, 2026 Additional Details to Follow Franklin Financial Services Corporation F&M TRUST
Stock Symbol: FRAF (Nasdaq) franklinfin.com fmtrust.bank Franklin Financial Services Corporation F&M TRUST
Thank You Franklin Financial Services Corporation F&M TRUST